Midwest Corp. completed the following transactions in 2011, the first year of operation:

1. Issued 20,000 shares of \(\$ 10\) par common stock at par.

2. Issued 2,000 shares of \(\$ 30\) stated value preferred stock at \(\$ 32\) per share.

3. Purchased 500 shares of common stock as treasury stock for \(\$ 15\) per share.

4. Declared a 5 percent cash dividend on preferred stock.

5. Sold 300 shares of treasury stock for \(\$ 18\) per share.

6. Paid the cash dividend on preferred stock that was declared in Event 4.

7. Earned revenue of \(\$ 75,000\) and incurred operating expenses of \(\$ 42,000\).

8. Closed revenue, expense, and dividend accounts to the retained earnings account.

9. Appropriated \(\$ 6,000\) of retained earnings.

Required

a. Prepare journal entries to record these transactions and post them to T-accounts.

b. Prepare the stockholders' equity section of the balance sheet as of December 31, 2011,